CONSTRUCTION DIVISION

The projects undertaken during 2010 include the following:

• Al Raha Gardens Project
  This AED29.9 million contract which was awarded to us on 23 March 2010 involves the construction of a retail centre for Al Raha Gardens Community in Abu Dhabi. Commenced in March 2010, this project is substantially complete. We expect to hand over the project to the client within the agreed time-line of 12 months.

• Al Falah Village 4 Project
  This AED950 million contract involves the construction and completion of 730 villas for Village 4 of Al Falah Community Development Project in Abu Dhabi. Commenced in January 2010, this project is scheduled to be completed in 3 sections with the last section being completed within 30 months, i.e. by 9 July 2012. Work on this project is progressing smoothly in accordance with the scheduled work programme. We expect to complete and deliver the project on schedule within the agreed timeframe.

• Pekan Agropolitan Project
  This RM29 million contract which was awarded to us in September 2010 involves the construction and completion of 213 units of houses, 10 units management quarters, amenities and infrastructure works for Pekan Agropolitan Development. Work on the project commenced in September 2010 and is progressing well in accordance with schedule. We expect to complete and deliver the project within the stipulated timeframe of 15 months, i.e. by 22 December 2011.

• Besut Setiu Agropolitan Project
  This RM60 million contract which was awarded to us in September 2010 involves the construction and completion of 100 units of houses, 5 units management quarters, amenities, 52 animal production units ("APU"), fodder plot and other associated facilities and infrastructure works for Besut Setiu Agropolitan Development. Commenced in September 2010, the project is behind schedule due to major changes in earthwork and foundation design to the resettlement and APU areas as requested by the client. We are pursuing an extension of time for the completion of the project by the 3rd quarter of 2012.

• Putrajaya STP 2 Module 2 Project
  This RM163.2 million contract involves the design, construction, completion and commissioning of an integrated sewerage treatment plant STP2 module 2 for Putrajaya. Since commencement in February 2009, we have made good progress on this project. However, due to major changes in mechanical & engineering components requested by the relevant authority, we are pursuing an extension of time for completion of the project. We expect to complete and handover the project to the client by the 1st quarter of 2013.

• GUMUSUT Kakap FPS Hull Project
  This RM24 million contract which involves the execution of painting and blasting works for Gumusut-Kakap FPS Hull project, was undertaken by a 80:20 joint-venture between our jointly controlled entity, namely ThyssenKrupp Xervon Corp. Sdn Bhd, and Mindus (M) Sdn Bhd. Commenced in May 2008, we have completed the relevant works in accordance with the scheduled work programme and expect final delivery of the project in the 2nd quarter of 2011.

• Miri Crude Oil Terminal Rejuvenation Project Phase 2
  This RM146.2 million contract involves the procurement, construction and commissioning of Miri Crude Oil Terminal Rejuvenation Project - Phase 2 and is being undertaken on a "live plant". Following the resumption of work in March last year, we have substantially completed the project and expect to hand over the project soon.

• Helicopter Aviation Services
  Since its inception on 1 October 2008, the Awan group has performed commendably without incidents. In terms of operational and safety standards, it has met the stringent requirements of the Malaysian Department of Civil Aviation and passed with flying colours all of the several operational audits by Shell Aviation and CHC Helicopters. We are proud to say that the Awan group was the first Malaysian aviation company to operate the EC225. It is also heartening to note that Awan group's operation has been rated as one of the best helicopter aviation services provider in the South East Asia region.
  
  Pursuant to the sales contract entered into with Eurocopter Malaysia Sdn Bhd for the purchase of 3 + 1 brand new EC225 helicopters in offshore configuration, the group has taken delivery of the first helicopter in December 2010.The second helicopter is expected to be delivered by end of 2011 while the third helicopter is scheduled for delivery by May 2013. The existing helicopters under lease from CHC Helicopters will be replaced progressively upon delivery of the group's owned helicopters.
  
  The group has also obtained the relevant approvals for the construction of its own hangar costing RM35 million at Miri Airport. Construction of the hangar commenced in June 2010 and is scheduled for completion in July 2011.